To ask how much you save every month

[HukkaPukka]

I'm just getting on top of things after covid-related financial mess and managing to put aside about £300/month. How much do you put in your savings/ISA on a monthly basis? Do you save/budget/feel it's a priority? I'm trying my absolute best to budget to the finest detail now and save every penny. Last year taught me not to take anything for granted.. Just interested how everyone else feels?

12% plus employer contribution into pension
Any yearly bills, I've worked out the monthly equivalent and save that in one savings account
I have approx 4 months bills saved for just in case.

Rather than save anything else, I overpay my mortgage by £300-1000 a month as the interest on the mortgage is higher than I'd get in a savings account. I have a credit card I can use for 'big' emergencies and if I did that, I'd then repay that rather than overpay the mortgage.

Jointly, £500 but we overpay the mortgage significantly more than that also. I also save from my own 'spending money' that we each retain from our salaries.

Roughly 20% of my salary (plus another 15% into my pension). Although that might have to drop as DH is currently unemployed.

@Popcorn24 I was just wondering the same thing. People saving £2k a month?! I spend that on nursery alone, then there's rent, bills, food. If £50 goes into savings it's a miracle!

Monthly, I put £190 in to workplace pension (pre tax)
£250 in to my savings as a standing order
£500 from DH in to H2B ISA
£150 approx from me in to another of my savings accounts
£70 from joint account in to DS’ savings account, plus the odd £10 or £20 that we can spare per month in to his account, plus all birthday/Christmas money

We’re saving (slowly) for a house deposit, but can’t really save more as DS’ nursery is £1200 a month. DH foolishly still hasn’t sorted a private pension (he’s self employed) despite me going on about it all the time. I hope we can save more ultimately.

Just to say to anyone who is reading this and despairing - please don’t. Even if you can only save £5, £10, £15 a month it does add up, it will help you down the line and it does make a difference. If you can’t afford at all or to save for your children don’t worry about that either. My parents couldn’t save for me and I’ve been very happy, successful and managed just fine.

We didn’t save in our early 30s but I really, really wish we had.

My only other bit of advice is never, ever, ever quit a pension. Always pay in to your pension (as I keep telling DH...)

£0
Every month religiously

Up to £1,000 a month, but some of that will later be used for big purchases like home improvements and holidays. Last year the average amount I put away each month (and didn't later spend) was £500. I have a decent salary, no debts, modest outgoings (no kids) and am saving to buy a new flat.

[quote Pinetreesfall]@Popcorn24 I was just wondering the same thing. People saving £2k a month?! I spend that on nursery alone, then there's rent, bills, food. If £50 goes into savings it's a miracle![/quote]
So glad its not just me! We are lucky if we get around 2k in total a month, its very often just below that & we don't pay for childcare, god knows what would happen if we had that expense as well!

We save about £5k per month in various ways. We do live in Switzerland though and salaries are very high.

"Why do people save thousands a month but not into a pension scheme where they can get tax relief? What are the concerns people have about pensions ( I am new to this and worried I am missing something major)?"

Firstly I already do save significant additional money into my pension but I have to be careful as otherwise, eventually I could exceed the lifetime allowance and end up with a 55% tax charge which means I am losing out on the employer contribution so it really discourages pension saving. In addition, pensions cannot be accessed until either state pension age or 55 depending in the type of pension.

We had a number of years of feeling really skint and at times it ground us down...ie childcare costs, mortgage etc. We now have no childcare, am mortgage free, house has been renovated so very little maintenance and we have never had car loans or PCP. Suddenly we have what feels like a huge amount of money share every month but past experience of being skint has imbued us with being cautious and not going out and being flamboyant so we have saved most of it into investment funds which despite Covid have done really well (despite a massive drop last March when stock markets crashed).

We now have a very healthy amount invested which seems to be growing well and we add to it each month. I guess there could see a point where we might splash out and have some really extravagant holidays before the kids are too old but that won't be anytime soon until Covid has past.

Why do people save thousands a month but not into a pension scheme where they can get tax relief? What are the concerns people have about pensions ( I am new to this and worried I am missing something major)?

I already save 10% in to my pension (and employer 14%) and DH saves 17%, employer 3%. There would be minimal benefit from having a separate private pension for me. Plus a certain amount of cash is good, for if the car breaks or one of loses our job or becomes disabled. A stocks and shares ISA should over time produce a good yield and we can use that to pay off the mortgage.

Plus once in a pension it's really hard to get it back out if you need it.

I do agree though that if you save lots and don't have any pension that's silly.

£500-750 a month, saving for a house deposit. Thinking of moving some of it into premium bonds as interest rates are so low.

Plus DH and I both pay into our workplace pensions, and put £10 a month into both DCs savings accounts.

£1200 between my husband and I.

1-2k jointly. This goes towards overpaying the mortgage as we want to pay it off as quickly as we can. We do put into pensions aswell through salary sacrifice, about £200 a month.

Why do people save thousands a month but not into a pension scheme where they can get tax relief? What are the concerns people have about pensions (I am new to this and worried I am missing something major)?

My employer has a defined benefit scheme, so I’m mindful of the lifetime limit, and until recently the tapering of tax relief for high earners was also an issue (I only get to change my pension decisions once per year for this scheme). Plus income from a pension is taxed in retirement. So it makes sense to have income from ISAs too - the savings were taxed before they were invested, but are not taxed on the way out.

Through 18/19 we’re going into a bit of debt funding 2 in nursery. Then came school, 30 hours and COVID so paid that off quite quickly and built up a few grand of savings last year. Now £250 goes straight to isas and Plum takes a bit. We have a ‘backlog’ of 4 £5k ish home renovation projects for the next 2ish years. Hope after that to divert an extra £1k a month to mortgage and ISAS. But not sure what expenses we will pick up in a post covid world.

What's a plum account?

Agree with PP: if you're reading these threads and feeling disheartened, please don't. Any (really, any) amount per month is good - I think it is getting into a saving habit which helps.

And I too never had savings from my parents - and it didn't do me any harm. Always been a saver by nature.

I find reading these threads useful - it's hard to have a conversation with people I know IRL about savings habits!

@Ardnassa I agree with you. I started this thread because I think it's important to talk about money. With friends and family talking about finances in detail can be a bit tricky, but it's easier anonymously.
I'm feeling like I need to look at trying to increase my earnings for more income. At my current work its not possible, but maybe I need a bit of a side project of some sort.. Any ideas welcome 😉😊

@bigtimefun

What's a plum account?

@bigtimefun plum is a savings account attached to your bank account. It uses an algorithm based on what comes in and goes out of your account to take money out of your current account as savings. I would never have said I can afford to save £35 a week out of what is £185 weekly wage, but it does it. It took a month or so to get used to, but I love mine.

It allows instant withdrawals and deposits and there are additions saving features if you want them!

I have a referral code if you or anyone else wants it -

friends.withplum.com/r/Ki4KZk

I agree - I never had savings from my parents but they also never talked to us about money beyond it being tight.

I got into a bit of debt trouble while pregnant/on Mat leave and I just a didn’t understand credit cards etc.

2019 really encouraged me to knuckle down because I had put myself in a vulnerable situation quite without thinking about it. I never want to be in that position again.

Simple things as well like my boss asking me to opt out of the pension scheme, which I did, but now regret.

@AlohaMolly I believe your boss asking you to opt out of your pension is illegal. You would be perfectly within your rights to whistleblow to The Pensions Regulator

www.thepensionsregulator.gov.uk/en/contact-us/scheme-members-who-to-contact/help-with-concerns-about-your-workplace-pension

www.moneymagpie.com/manage-your-money/could-employers-force-pension-opt-outs-to-save-money

@yoyo1234

Why do people save thousands a month but not into a pension scheme where they can get tax relief? What are the concerns people have about pensions ( I am new to this and worried I am missing something major)?

There comes a point when putting more into a pension pot isn’t good financially. It’s good when you’re young and needing savings for future life, but if you’re lucky your pension pot fills up and then it’s better to stop paying in and put that money somewhere else.

About £200 at the most. I like to spend all my money, and whilst it will probably bite me on the arse in the future or if a massive expense turns up, I've always been this way and I enjoy spending it